Oil slips, but keeps overnight gains as OPEC complies with output cuts

Oil prices slid on Tuesday but mostly kept overnight gains after OPEC+ said that producers are nearly fully complying with the agreed output cuts amid a collapse in fuel demand.

Brent crude fell 0.5%, or 22 cents, at $45.15 per barrel. U.S. crude lost 0.5%, or 23 cents, at $42.66 per barrel. 

OPEC+ producers’ compliance rate was seen at 97% in July, according to sources. Oil producers slashed production by record levels to buoy prices amid a drop in demand due to the pandemic.

OPEC+ slashed their agreed cuts to 7.7 million bpd from 9.7 million bpd in August as prices began to recover in recent months.

Elsewhere, Japan’s economy is likely to fall steeper than previously expected.

The U.S. Energy Information Administration last week revised its global oil demand forecast, suggesting a smaller than expected drop in global inventories.